Last week, Deputy Prime Minister Freeland tabled Bill C-2, An Act to provide further support in response to COVID 19 in the House of Commons.
If passed, this bill will provide up to 75% wage and rent subsidies to travel agencies who suffered a revenue decline of 40% or greater - but there are some conditions.
Independent travel agents appear to be left out
At this time, there is no indication that independent travel agents will benefit from either program.
ACTA continues to meet with politicians and key government officials, urging them to amend the bill to include independent travel agents, or to introduce new financial supports for these sole proprietors.
Emergence of Omicron threatens industry
However, with the emergence of the COVID 19 Omicron variant, some governments are quickly shutting borders, just weeks before the busiest travel season of the year.
"ACTA is closely analyzing the situation and is deeply concerned about the impact on travel agencies and independent travel agents, who are currently without financial support," said Wendy Paradis.
There is an urgent need for all Members of Parliament and Senators to urgently pass Bill C-2 into law and to introduce support for independent travel agents.
Without financial support travel and tourism businesses and jobs are immediately under threat.
Details of the Tourism and Hospitality Recovery Program
As proposed, the bill will provide backdated wage and rent support from October 24, 2021, ending May 7, 2022.
Wage and rent supports drop in half starting March 13, 2022; as an example, a business eligible for 75% subsidy would get that between October 24, 2021 - March 12, 2022, and then up to 37.5% subsidy between March 13, 2022, and May 7, 2022.
To be eligible, businesses must have had a 40% or greater revenue decline for each month between March 15, 2020, and March 13, 2021. Further, eligibility is determined monthly starting October 24, 2021, where a minimum revenue 40% drop or greater is required.
The program works similarly to the previous wage and rent subsidies and will be administered by the CRA.
Further, the Canada Worker Lockdown Benefit was proposed, which provides financial support to workers impacted by a lockdown issued by any level of government, including federal, provincial, and municipal. Current indications are that border restrictions and advisories do not constitute a lockdown under this program.
Call to Action
ACTA is meeting with politicians and government decision makers, urging them to provide financial support to independent travel agents and to implement the proposed bill quickly.
Once again, it is essential that travel agencies and independent travel agents write to their Members of Parliament to share their stories and need for immediate financial support.
In response to the Omicron variant, ACTA calls on all governments to follow the science to ensure the best possible health and economic outcomes. Where appropriate, governments should coordinate their response globally.
Topics From This Article to Explore
